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Core Fund Update 5

June 17, 2024
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Wiko Steyn
Author
Wiko Steyn

#15 of 20 stocks added

 

Two farmers are watching the sunset on their tractors while having a chat.

The first says, I keep hearing on the radio, TV and read in the papers about stocks but I still have no idea what it is. Do you know?

The second farmer replies, How should I explain this to you? Let's say you buy some eggs for your farm. These eggs hatch and now you have chicks. These chicks grow up to be hens that lay more eggs, out of which you get more chicks that grow up to be hens and so on and so forth. Eventually, your farm is full of them.

Then, one day a big flood ravages your land and takes all of them downstream. Then you sit and think to yourself: ducks, I should have gotten ducks. Thats what investing in stocks is like. 

 

Have you ever given any thought to what it means to be a shareholder? 

Most people have a very one-dimensional view of the market. Money. They look at stocks on charts and obsess over all the financial metrics. Let's not kid ourselves, we are all in the market to make money but there is actually more to it. If you are an investor in individual companies, instead of indexes or mutual funds, you surely must have a passion for it. You are taking a lot more risk and if history is anything to go by, there is a good chance that the indices will outperform you. 

Why do we love investing in individual companies? 

You have the opportunity to be part of something, a new innovation, a medical cure, a transformative technology. We believe it is a privilege to be able to invest in some of the smartest people in the world, taking on the most difficult challenges.  If you are a long term investor we urge you to start reading about companies on a deeper level and look at the charts less often. We are not saying valuations, technical analysis, and margins do not matter, but first take the time to truly understand the company, its management, its technology and then look at the stock. It will greatly change the way you invest and also help you sleep at night.   

 

New Stock

ServiceNow provides software solutions to organise and automate various business processes via a SaaS delivery model. They are focused on true end-to-end digital transformation with the ultimate goal of increasing productivity. ServiceNow's main offering is the Now Platform which organises workflows on a single enterprise cloud platform. Essentially, it is the platform of platforms. The company states, 

Behind every great experience is a great workflow. As the foundation for all digital workflows, the Now Platform connects people, functions, and systems across your organisation. 

Bull Thesis: This cash cow is revolutionising the modern workplace


 

Portfolio Update Summary

Along with our new position in ServiceNow, we also added to our current holdings of DataDog, MongoDB and Google on share price weakness.

  • Buy $500 NOW at $411.45
  • Buy $250 DDOG at $85.91
  • Buy $250 MDB at $221.86
  • Buy $250 GOOG at $2,264.65

 

Disclosure

This article is not financial advice and is based on the opinion of the author. The $20K in the Core Fund is not real money and only a demonstration of a typical portfolio. This is an actively managed portfolio, where we will buy and sell positions as we deem fit without any regard for taxation. Remember, all selling of stocks triggers a tax event in most countries and it is the investors personal responsibility to always remain tax compliant.

 















 

 




 

  


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